Section 17 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 17 says when a contract of sale is a contract "for sale by sample" and what the law then implies. There are three implied conditions: the bulk corresponds with the sample in quality, the buyer has a reasonable opportunity of comparing the bulk with the sample, and the goods have no defect making them unmerchantable that a reasonable examination of the sample would not show.
A contract of sale is by sample where there is a term in the contract, express or implied, to that effect. In such a contract there are three implied conditions: (a) the bulk corresponds with the sample in quality; (b) the buyer has a reasonable opportunity of comparing the bulk with the sample; and (c) the goods have no defect making them unmerchantable which a reasonable examination of the sample would not show.
Reading note
This article follows the consolidated text of the Act consulted (latest amendment shown: Act 28 of 1993); later amendments should be checked in the official text. "Condition" is used as section 12 defines it, so breach of each of the three terms gives the buyer a right to treat the contract as repudiated, subject to section 13. "Quality of goods" is defined in section 2(12) as including their state or condition. Section 17 is the last section of Chapter II. Because a sample-based order often runs through catalogues, quotations and supply terms, a vendor and supplier agreement should say plainly which sample the contract is tied to.
Section 17(1): when the contract is "by sample"
"A contract of sale is a contract for sale by sample where there is a term in the contract, express or implied, to that effect."
Two words matter: term and express or implied. A contract is by sample only if the contract itself contains a term to that effect. The term may be written or spoken (express), or it may be inferred from the contract (implied). Showing a sample during negotiations does not, on the words of the sub-section alone, make a contract one by sample; the test is a term of the contract.
Example (the writer's own, not printed in the Act): Iyer Carpets sends Khan Furnishings a piece of its woven carpet. The purchase order says: "Supply of 300 m of carpet as per sample sent on 3 March." That is an express term to the effect that the sale is by sample.
Section 17(2): the three implied conditions
"In the case of a contract for sale by sample there is an implied condition—"
17(2)(a): the bulk corresponds with the sample in quality
"that the bulk shall correspond with the sample in quality;"
The measure is quality. Section 2(12) says quality "includes their state or condition", so the comparison covers more than grade. The comparison is between the bulk delivered and the sample.
17(2)(b): reasonable opportunity of comparing
"that the buyer shall have a reasonable opportunity of comparing the bulk with the sample;"
This is a condition in favour of the buyer. The buyer must be given a reasonable opportunity to compare the bulk with the sample. The text does not say how long or in what manner; "reasonable" is the standard. This article adds no period.
17(2)(c): no hidden defect making goods unmerchantable
The clause is paraphrased, not quoted: it implies a condition that the goods have no defect making them unmerchantable which a reasonable examination of the sample would not show.
The words to notice:
- the defect must be one that makes the goods unmerchantable;
- the defect is one that would not be apparent on reasonable examination of the sample. If a reasonable examination of the sample would have shown the defect, the clause does not apply to it.
The test looks at the sample, not the bulk. The condition addresses defects that are hidden in the sample, so that the buyer, by examining the sample, could not have found them.
Example (the writer's own): Hotel Orchid orders crockery from Nair Ceramics by sample. The sample cup is sound. The bulk cups, though matching the sample in look and weight, have a hairline flaw in the glaze that causes them to crack on first hot use, a flaw a reasonable examination of the sample would not have disclosed. That is the kind of defect 17(2)(c) addresses. By contrast, if the sample itself showed a chipped rim and the bulk had chipped rims too, the defect would have been apparent.
The three conditions compared
| Clause | Implied condition | What the buyer can ask |
|---|---|---|
| 17(2)(a) | bulk corresponds with the sample in quality | is the bulk the same in quality as the sample? |
| 17(2)(b) | reasonable opportunity of comparing bulk with sample | was I given a fair chance to compare? |
| 17(2)(c) | no unmerchantable defect that a reasonable examination of the sample would not show | is there a hidden defect that I could not have found from the sample? |
How section 17 fits with its neighbours
| Section | Subject | Link to section 17 |
|---|---|---|
| 15 | sale by description | if the sale is by sample as well as by description, matching the sample is not enough if the goods do not match the description |
| 16(2) | merchantable quality of goods bought by description | the word "merchantable" is used in both, but 17(2)(c) is tied to defects not apparent on reasonable examination of the sample |
| 12 | condition and warranty | the three implied terms are conditions |
| 13 | when a condition is treated as a warranty | may limit the right to repudiate |
Read section 15 for the point that a sale by sample and by description must satisfy both, and section 16 for the separate implied conditions of fitness and merchantable quality.
Practical points
- Keep the sample. A sealed, signed and dated sample, retained by both parties, is the thing against which the bulk is compared. The Act does not say who must keep it; keeping it is simply good practice.
- Record the term. A line in the order such as "as per sample no. X, signed by both sides" makes the term under 17(1) plain.
- Give time to compare. A buyer who wants the benefit of 17(2)(b) should ask for a reasonable chance to compare on receipt. A seller who refuses it risks breaching the condition.
- Mind the description. If the order also describes the goods in words, section 15 adds a second test.
- Do not extend the section. The text does not say what happens to the buyer's rights after acceptance; that is dealt with in sections 13 and 42 and should be read there.
Need help with sample-based supply terms?
If you buy or supply goods against a sample, we can prepare or review the vendor and supplier agreement so that the sample, the comparison step and the defects covered are written clearly.
Key takeaways
- A contract is by sample only where there is a term in it, express or implied, to that effect.
- Three conditions are implied: bulk matches sample in quality; reasonable opportunity to compare; no hidden unmerchantable defect that a reasonable examination of the sample would not show.
- Each is a condition in the sense of section 12.
- If the sale is also by description, section 15 adds a second test.
- Keep and mark the sample.
Read next
- Section 15 of the Sale of Goods Act, 1930: sale by description
- Section 16 of the Sale of Goods Act, 1930: implied conditions as to quality or fitness
- Sections 18-19 of the Sale of Goods Act, 1930: goods must be ascertained and property passes when intended
- Vendor agreement: key clauses and template
Disclaimer: Based on the consolidated text of the Sale of Goods Act, 1930 consulted on 2 October 2026, whose latest amendment shown is Act 28 of 1993. It explains the words of the statute only; later amendments and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.